10 Positive and Negative Impacts of Technology On Business

Published in

Bitrix Infotech Pvt Ltd

13 min read9 hours ago

As you know business landscape is changing dynamically. Before a decade ago, organizations faced many issues in managing the staff, inventory, and sales. After adapting to the technology revolution in business, these issues are reduced by 0%.

However, don’t overlook the potential negative impact of the technological advancements. As a business owner, you must have to know them. After all, you’re investing time and money in business. Expecting better results from it is not a bad thing.

So, in this article, we will identify the positive outcomes of embracing modern technology in organizations. Also, you will understand what a dark side technology has and how it affects the entire business.

Why Technology is Required in Business?

Since multiple technologies are introduced to the business the landscape has changed dramatically. Organizations are taking leverage of this revolution and properly manage the workflow. They can show improvement in operational activities like production, sales and marketing, financial accounting, and many more.

All credits go to modern technologies like Artificial Intelligence, Cloud Computing, Software, Blockchain, and the Internet of Things (IoTs). Through the wise usage of these technologies, businesses can easily access important data from anywhere and anytime. Using these data strategically helping to steps to enhance the customer experience.

In MNC units the four pillars are laying the foundation of success:

Production costs
Quality of product
Proper infrastructure
Better communication tools

To build these pillars in your organization, you can take the help of cutting-edge solutions and achieve business goals.

As you have a 100+ workforce in your company you can rely on remote work to effectively manage the entire workflow of employees and business. Your employees will be in touch through their smartphones and for that, they aren’t required to be physically present at a specific location. Here the privacy concerns and data storage issues are evaporated through advanced technologies like cloud computing and blockchain.

That’s why not only Multinational companies are leveraging technological advancements but ecommerce startups are investing in business technology. From that, they can handle every department of the organization through a seamless communication pattern and reduce the response time to customers. They’re ultimately growing their brand and clearing the path to being successful.

Now let’s understand the positive impacts of adopting technology innovation into daily business life.

Positive Impacts of Technology on Business

After the technological revolution in business, we have noticed core positive impacts. It has changed the complete scenario of how the business has to be operated for better results.

From that, you get multiple benefits to propel organizations to new heights.

Let’s understand some of the most significant positive impacts technology had on the business world.

Improved Efficiency and Productivity

In today’s fast-paced and dynamic business environment, the efficiency is paramount. If your business can’t adopt it then forget the wish to become a famous brand regardless of the industry in which you’re involved. The core success of your organization depends on how effectively you are managing the production cycle from planning to marketing.

Here, the support of technology works just like a remedy for your problems. You can still imagine it’s an indispensable tool in streamlining operations and boosting productivity. So, investing thousands of dollars to buy heavy machinery or recruit staff will not be required, if you go with modern technology solutions.

For example, Automation handles repetitive tasks and allows human resources to keep focus on strategic initiatives for business growth. Also, Robotic Process Automation (RPA) helps you to handle mundane data quickly and reduces you from losing yourself in the data’s whirlpool.

At the same time, AI-powered chatbots are working as a human customer representative that solves the queries of customers and provide them a complete guidance. All these can happen with the power of technology and it’s helping to improve productivity.

Also, the Cloud Computing is the best choice to enhance the work productivity. This form of technology helps your business to store the data and run applications on remote servers. There’s no need to heavily invest to develop a separate custom IT infrastructure.

As a result, the employees can work remotely which helps them to communicate with the team members effectively and complete their allocated task regardless of physical presence at the organization.

Enhanced Communication and Collaboration

You’re familiar with the usage of Google products, Microsoft services, and Amazon for online shopping. Also, Zerodha, Lenskart, and boAT services are popular across the globe, especially in India.

But do you know how these companies became unicorns and proved themselves as a leader in the market?

The answer is the “prominent way of communication.” They were very well known how the technology would change the work management. So, they adopted the best channels for communication to share data with their executives and employees and receive back their suggestions for improving the product design and defining the budget for the ongoing launch.

From this approach, the conflict will be reduced and it helps to maintain a professional environment in the organization. Here, businesses are doing effective time management. The technology removes the barriers between teams and project managers who constantly working on product improvement. It helps them to collaborate effectively and complete the assignment within a dedicated timeframe.

So, as you own a fashion ecommerce startup in the NewYork and have 50+ employees in a team, you need the best channel for better communication. You can choose Slack, Microsoft Teams, and Google Workspace for sharing ideas, and files and getting updates in real-time.

These project management softwares offers a centralized platform for planning, tracking, and managing projects perfectly. It reduces the chances of repetitive tasks and ensures everyone is on the same page. That ultimately increases productivity and enhances the friendly atmosphere in the company.

A great example of how technology increases collaboration in the team is “Video Conferencing.” Its advantages go beyond the expectations. Through this technological advancement, you can connect over the Internet with clients and partners worldwide for face-to-face interactions. So discussing the project requirements and deadline clarification for project completion is easier rather than the traditional approach where you have to call clients and send emails for further details.

Access to a Wider Customer Base

Conquering the customer’s market is never going to be easy, especially in cutting-edge competitive fields like ecommerce or software and web development. But, with the technology you can achieve the goals of brand awareness and generate better revenue streams for your business.

our business revenue depends on how your product can be useful for customers and for that, you need the information about their interests and behaviors. There are many tools available that offer great insights into the customer’s choices, so you can prepare the most appropriate targeted marketing campaigns.

For example, if your ecommerce store sells sneaker shoes for men and women in Philadelphia and like to boost your brand recognition, you set the PPC advertising through Google Ads. In Google Ads, you can find every solution from keyword research to getting the campaign’s report, all can be managed easily. The best part of this digital advertising tool is allows Google Analytics integration.

In digital marketing, Content Marketing remains paramount. Without the proper, useful, and unique content, you can’t grab the attention of your potential customers. Delivering the best content through blogs, videos, images, podcasts, and other relevant channels makes your brand more professional and user-centric.

But, the problem is how to know what customers are searching for relevant to your products (colorful sneakers in this case).

Here’s the Search Engine Optimization (SEO) comes into the picture. For free SEO tools, you can rely on the Google Search Console (GSC). Through GSC you can check how your content ranks in the Search Engine Result Pages (SERPs) with total impressions, clicks, CTRs, and average position.

Also, a social media presence makes your ecommerce business authenticated and trustable through visually appealing posts. To increase your brand awareness, social media platforms like Facebook, Instagram, WhatsApp, and Messenger will help you. The reason behind recommending these platforms is just because it’s a Meta Inc. product and managing the digital advertising on the Meta is simple user-friendly, and perfect.

Data-Driven Decision Making

Do you know the reason why businesses are relying on technology, especially Business Intelligence (BI) tools?

To get a “complete picture of how the business is performing per the pre-defined goals.”

BI tools are designed with the help of programming languages. Without having proper technological knowledge, you can still easily use these tools to aggregate and analyze data from various sources. They provide you with a comprehensive view of your business operations, customer behavior, and market trends.

These analytical tools are trained through a computerized program that finds the patterns, correlations, and root causes. So, if you’re looking to launch a new product on your ecommerce site these tools offer great insight into is the product launch is beneficial for now or if postponing it after a month will be in your favor.

Through the data visualization tools, you don’t have to be involved in the text data. You can manage the data in easy-to-understand charts, graphs, and dashboards. So, from that you can discuss every aspect with your executives and get the best output you want.

Ultimately, from that you can make data-driven decisions along with all aspects. For example, these data can give proper information on product development strategies, marketing campaigns, resource allocation, pricing models, and even hiring decisions.

Here no guesswork will work but with the real-world available information, you can reduce the risks, maximize the profitability, and achieve your business goals smartly.

Cost Reduction

The myth about adopting the technology is “too much costly.” Most small businesses are thinking that if they implement innovative technology, they have to spend more budget. But it’s a not reality. Technology helps businesses to transform their expenses into investments.

For example, since the launch ecommerce fashion brand, your customers have increased due to your product’s compatibility and aesthetic looks. As your brand is scalable, it’s good to go with modern solutions. Ecommerce AI is the best option for managing the inventory properly and answering the customer’s questions 24*7 without deploying heavy machinery and recruiting more staff.

You can opt out for cloud computing for example. It’s an ideal solution for your business without heavily investing in IT infrastructure development. Cloud computing can optimize resource allocations based on real-time demand and make sure you pay only what you use. Thus, you can save overhead costs and invest them for growth and innovation.

Most importantly, technologies like Automation, AI-powered Chatbots, Blockchain, and Remote Work operations are affordable options, especially for your small business.

By automating mundane tasks, you can redirect human talent to high-value activities, driving innovation and improving customer satisfaction.

AI-powered analytics can uncover hidden cost inefficiencies, optimize supply chains, and predict maintenance needs, preventing costly breakdowns.

By offering remote work options, you can tap into a wider pool of skilled talent, reducing recruitment costs and increasing diversity. Additionally, remote work can boost employee morale and productivity, leading to higher retention rates and reduced turnover expenses.

These kinds of solutions are not just helping you save additional money but delivering the best productivity to your organization, you expected.

Ultimately, technology isn’t just about cutting costs; it’s about creating value. Through strategic investment in technology, you can streamline business operations, enhance organizational efficiency, and drive massive profitability. It’s not just about reducing expenses; it’s about maximizing returns.

As you are now aware of how implementing technology solutions in your businesses is beneficial.

Let’s understand the potential drawbacks of these modern innovations.

Negative Impacts of Technology on Business Organization

There’s no doubt technology helps the organization to achieve their objectives quickly. But, if you know the challenges of it that will be more relevant to mitigate the risks and efficiently take leverage of technology.

Cyber Security Risks and Data Breaches

The first negative impact of selecting a technology for your business is “cyber security risks and data breaches.” Nowadays most organizations depend on technology which opens the doors for cyber attackers who may take advantage of system vulnerabilities. They get unauthorized access to steal sensitive customer data, financial details, and intellectual assets to explicitly accomplish their intentions.

Note that, data breaches are dangerous to businesses’ goodwill. It results in massive financial losses, damage to reputation, and a surge in legal liabilities towards victims. If this data is being publicly available and used for illegal purposes, you’re responsible for it. So, if you can’t take a necessary step to prevent it you might be at risk.

Additionally, these cyber threats are evolving and to prevent them demand investment in cyber security infrastructure development and employee training. For example, firewalls, encryption systems, intrusion detection, and authentication options work as the shield to protect data and create a secure dome to reduce cyber security attacks.

Dependency on Technology

Recently, a Microsoft services outage cost $5.4 Billion as a direct financial loss to Fortune 500 companies in the USA. Thus, over-reliance on technology results in system failures, power outages, and internet outages that disrupt business processes. We’re not in favor of saying the technology is harmful to business but emphasizing it at every level can invite more problems.

For example, you’re using third-party AI chatbots for your customer services. But, within the upgradation of an AI system, the chatbots backfired and couldn’t address the solution that the customer asked for. So, customers are dissatisfied with your services and refuse to purchase from your brand.

To mitigate this risk, your business must have proper plans in place, such as backup systems and disaster recovery procedures.

Furthermore, it’s essential to maintain a balance between technology and human expertise. While technology can automate many tasks, human judgment and problem-solving skills remain invaluable. By fostering a culture of digital resilience, businesses can reduce their dependency on technology and ensure business continuity.

Job Displacement

As technology evolves and remains dynamic, skilled and talented professionals are always in demand. If employees are not gaining those required skills to operate technology like Artificial Intelligence and Automation through Machine Learning, they obviously lose their current jobs. There’s no meaning to keep doubt.

Through robotics programming. businesses are reducing repetitive tasks. But, it impacts the overall workforce. For example, without that technology, there are 120 humans required to operate the production cycle. After the technology, that work is completed with the help of 10 people. So, the remaining 110 employees should have to leave the organization or upskill their knowledge. It surges job displacement and higher employee turnover rates.

But, hold on.

As a business owner, if you don’t want to lose your valuable employees, it’s best to organize a seminar about new technologies and give them a chance to grow their knowledge. For that, you can offer them a certain kind of skill development programs related to AI, ML, Automation, Web 3.0, Blockchain, and Robotics. So, they can help businesses to boost productivity, enhance the customer experience, and drive a great amount of profit.

Note that, skilled employees are the most important asset of the business who not just only improve the product cycle but increase the social value of the organization. So keep holding your employee’s hand in this dynamic technological world.

Privacy Concern

Collecting and using the customer’s data is very important for your business to function effectively and accomplish its objectives. But, there is a privacy concern about it. Taking the help of technological advancements comes with to ensure you’re protecting the sensitive data.

Someone unauthorized takes permission from your systems without your consent will be not good for your brand. The victims who found your company guilty of misusing their information can lead to your business court and legal obligation. Once your brand is stuck in legal contemplation, that affects your reputation.

A lack of transparency in privacy protection will be harmful to your company and it will prevent customers from interacting with your brand. To minimize this, you must have to implement robust security measures like security protocols that comply with privacy regulations. Give a complete clarification of how the data will be collected and used for the purposes.

Cutting-edge Competition

Through proper usage of technology, your business can achieve goals successfully including but not limited to, more quality production, better customer service, balancing profit margins, and employee satisfaction. However, the technology advancements open the gate for new businesses increasing the competition regardless of the industries and sectors.

Too many competitors are serving identical solutions leads to price wars, lower profit margins, and sophisticated customer experience. So, to be a successful brand in this tech-loved world, your business should be differentiated from the competition. For that, you have to offer unique products with complete tutorials, implement effective marking campaigns through the available channels, and always remain available for customers’ concerns.

The best way to compete with the ever-changing cutting-edge competition, you must have to keep parallelly walking with the latest trends in technology. If you fail to catch these opportunities be ready to lose your market share and be an unknown brand.

So, invest in the research and development department and employee training to upskill their knowledge. Meanwhile, preferring to do strategic partnerships when necessary is ideal for healthy and transparent competition.

Ultimately, getting technology into business is a boon for a small organization that wants to optimize its production cycle for better output and improve its customer services through modern solutions. On the other side, the potential unfair impacts back push the business into competition. So, it’s best to know those effects before implementing the technology in the company.

Final Words

Adopting technology in business operations reduces redundant tasks and provides effective solutions to maximize profitability. As competition in every industry remains dynamic, without the help of technological advancements like AI, ML, Web 3.0, and Robotics handling it is very easy.

But here’s the drawback: to operate these modern solutions demands proper expertise and skills. With that knowledge and skills, you can leverage the technology and become the best brand.

Bitrix Infotech brings complete solutions for technology like software development, ecommerce platform development, and blockchain development.

Contact us for more information and we will deliver the best output to your requirements without compromising the quality.

Let’s bring your brand in front of the customer through modern and sufficient technology advancements.